Wakachiku Construction

Basic Information

Stock Code
1888
Industry
Construction
Category Detail
Construction & Civil Engineering
Prefecture
Tokyo
Establishment Year
May 1890
Listing Year
October 1961
Official Website
https://www.wakachiku.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Matsui Construction, Tekken Construction, Toyo Construction, Goyo Construction

Overview

Wakachiku Construction is a long-established comprehensive construction company founded in 1890, headquartered in Tokyo with its base in Kitakyushu, specializing mainly in marine civil engineering.

Current Situation

Wakachiku Construction recorded consolidated net sales of approximately ¥89.1 billion and operating profit of approximately ¥6.8 billion in the fiscal year ended March 2022, establishing a stable business foundation. It excels in marine civil engineering and port works, with a track record in large-scale projects such as Haneda Airport and the Akashi Kaikyo Bridge. Centered in Kitakyushu, it has branches across Japan and is expanding in civil engineering and construction fields. With over 130 years of history since its founding, it emphasizes technological prowess and safety, earning customer trust. It also focuses on reducing environmental impact and contributing to local communities, working toward sustainable society building. Moving forward, it aims for further growth through expansion in land-based civil engineering and overseas business, as well as advanced construction technologies. The Asao Group owns 20% of shares, providing a stable shareholder base. It is also managing risks such as labor shortages and fluctuations in construction material prices.

Trivia

Interesting Facts

  • Long-established construction company founded in 1890 with over 100 years of history.
  • First in Japan to introduce hybrid dredger for marine civil engineering works.
  • Representative construction achievements include Akashi Kaikyo Bridge and Haneda D Runway.
  • Head office located in Kitakyushu City, Fukuoka Prefecture, deeply rooted in the region.
  • Founder Kanpei Ishino, with Shibusawa Eiichi involved as advisor.
  • Established Wakachiku Historical Materials Museum for 130th anniversary.
  • Extensive track record participating in large-scale offshore airport works.
  • Long-term stable transactions with government offices building trust.
  • Has mascot character 'Wakkun the Platypus'.
  • Asao Group is one of the major shareholders.
  • Deploys 10 branches nationwide for countrywide response.
  • Early introduction of proprietary safety management system reduced accidents.
  • Advanced environmental considerations in dredging and reclamation works.
  • Expanding track record in overseas Asian markets.
  • Comprehensive construction system integrating civil engineering and building fields.

Hidden Connections

  • Shibusawa Eiichi was directly involved as an advisor in the early days of founding.
  • Strong capital ties as a related company of the Asao Zaibatsu.
  • Enterprise that developed in close collaboration with port development in Kitakyushu City, Fukuoka Prefecture.
  • Hidden key player contributing to infrastructure construction domestically and internationally with marine civil engineering technology at its core.
  • Collaborates with major domestic general contractors on numerous complex large-scale projects.
  • Former politicians and zaibatsu affiliates involved in founders and management, supporting the business foundation.
  • Highly evaluated in the industry for advanced introduction of environmental preservation and digital construction technologies.
  • Wakachiku Construction's dredger is attracting attention as Japan's only hybrid propulsion vessel.

Future Outlook

Growth Drivers

  • Increasing demand for marine civil engineering infrastructure and renewal needs
  • Expansion of large infrastructure projects domestically and internationally
  • Growing demand for environmentally considerate technologies amid stricter regulations
  • Penetration of ICT and digital technologies into construction sites
  • Rising port development needs in overseas Asian markets
  • Support for government regional revitalization and urban redevelopment policies
  • Improved market evaluation for safety and quality
  • Stable order environment centered on government offices
  • Cost reduction effects from construction technology innovations
  • Rising awareness of contributions to sustainable society
  • Strengthening of customer base through locally rooted management
  • Organizational enhancement through talent development and diversity promotion

Strategic Goals

  • Establish as industry leader in marine civil engineering domestically and internationally
  • 40% productivity improvement through company-wide digital construction technology adoption
  • Development and promotion of sustainable construction technologies
  • Achieve 30% CO2 emissions reduction through environmental load mitigation
  • Expand overseas sales ratio to over 20%
  • Enhance CSR activities through strengthened coexistence with local communities
  • Maintain highest level safety management standards and achieve zero accidents
  • Secure and retain talent through realization of diverse work styles
  • Maintain operating profit margin over 5% through revenue structure reform
  • Strengthen capital for establishing sustainable business foundation

Business Segments

Port and Marine Civil Engineering Works

Overview
Segment specializing in civil engineering works related to ports and marine areas.
Competitiveness
Extensive marine construction experience and ownership of high-performance dredgers
Customers
  • Ministry of Land, Infrastructure, Transport and Tourism
  • Local Port Administrators
  • General Contractors
  • Shipping Companies
  • Power Plant Operators
Products
  • Dredging Works
  • Reclamation Works
  • Breakwater Construction
  • Submarine Tunnel Works
  • Port Facility Construction

Land-based Civil Engineering and Road Construction

Overview
Provides land-based civil engineering works such as roads, bridges, and water supply and sewage.
Competitiveness
Construction know-how adaptable to diverse terrains
Customers
  • Ministry of Land, Infrastructure, Transport and Tourism
  • Prefectural Governments
  • Local Public Entities
  • Construction Companies
  • Railway Operators
Products
  • Road Paving Works
  • Elevated Bridge and Bridge Works
  • Water Supply and Sewage Facility Works
  • Land Development Works
  • Civil Engineering Solutions

Building Construction and Design-Build

Overview
Performs architectural design and construction for buildings and housing.
Competitiveness
Superior design-build with excellent safety and quality management
Customers
  • Commercial Facility Owners
  • Real Estate Developers
  • Construction Companies
  • Apartment Management Associations
  • Public Facility Administrators
Products
  • Building Construction Works
  • Apartment Construction
  • Commercial Facility Design-Build
  • Public Building Maintenance

Overseas Business

Overview
Deploys port and civil engineering works overseas, mainly in Asia.
Competitiveness
Construction technologies adapted to local environments
Customers
  • Overseas Government Agencies
  • International Construction Projects
  • Local General Contractors
  • Port Administrators
Products
  • Port Development Works
  • Dredging Works
  • Infrastructure Development

Competitive Advantage

Strengths

  • Over 120 years of rich history and track record
  • High technological capabilities centered on marine civil engineering
  • Regional closeness based in Kitakyushu
  • Experience participating in large-scale infrastructure projects
  • Stable shareholder composition and financial base
  • Diversified business portfolio
  • Excellent safety management and construction quality
  • Ownership of high-performance dredgers and other equipment
  • Branch network spanning locations across Japan
  • Active participation in social contribution activities
  • Strong transaction relationships with government offices and general contractors
  • Comprehensive strength as a general construction company
  • Know-how in land-based civil engineering and building construction
  • Business operations considering sustainability
  • Long-term customer trust

Competitive Advantages

  • Technologies and construction capabilities honed in marine civil engineering
  • Extensive experience in large-scale port and airport construction
  • Customer closeness through regionally rooted management structure
  • Improved efficiency from proprietary dredger ownership
  • Aggressive investment capacity from stable financial position
  • Risk diversification through business expansion in multiple areas
  • Strict approach to safety and health
  • Track record and trust in public-private partnership projects
  • Capability to meet infrastructure development needs domestically and internationally
  • Securing and training of skilled technicians
  • Business planning based on long-term perspective
  • Introduction of environmental load reduction technologies
  • Efficient material procurement and supply chain management
  • Strong partnerships with local communities
  • Brand value from historical credibility

Threats

  • Cost pressures from rising construction material prices
  • Increased construction risks due to labor shortages
  • Decline in orders from fluctuations in public works budgets
  • Risk of construction delays from natural disasters
  • Political and economic risks in overseas business
  • Intense order competition with rival companies
  • Burden of complying with stricter environmental regulations
  • Risk of lagging behind technological innovations
  • Profit squeezes from market supply-demand fluctuations
  • Changes in funding environment
  • Risk of safety accidents at construction sites
  • Risk of loss of social credibility

Innovations

2024: Hybrid Grab Dredger 'Wakawashi Maru' Put into Operation

Overview
Introduced next-generation dredger with reduced environmental impact to achieve highly efficient construction.
Impact
40% reduction in CO2 emissions from dredging, 20% improvement in work efficiency

2023: Advancement of Submarine Tunnel Construction Technology

Overview
Succeeded in shortening construction period and improving safety through new construction methods.
Impact
10% shorter construction period, 15% reduction in construction costs

2022: Advancement of On-site Construction Management Using ICT

Overview
Significantly improved accuracy and safety using drones and 3D surveying.
Impact
25% reduction in construction errors, 15% improvement in work efficiency

2021: Practical Application of Environmentally Friendly Concrete

Overview
Developed and adopted concrete materials with low CO2 emissions.
Impact
30% reduction in environmental impact at construction sites

2020: Promotion of Digitalization of Safety Management Systems

Overview
Strengthened on-site safety assurance with IT systems, reducing accident rates.
Impact
10% decrease in safety accident occurrence rate

Sustainability

  • Equipment renewal and energy-saving construction aimed at reducing CO2 emissions
  • Adoption of methods considering marine ecosystem preservation
  • Promotion of coexistence with local communities and environmental education activities
  • Material management to improve waste recycling rate
  • Continuous strengthening of labor environment improvement and safety measures
  • Promotion of green infrastructure development
  • Incorporation of climate change countermeasures into business strategy
  • Promotion of dialogue with stakeholders
  • Management of environmental and social risks in the supply chain
  • Active response to Sustainable Development Goals (SDGs)
  • Efficiency improvement and environmental consideration through digitalization of construction sites
  • Strengthening utilization of renewable energy